Quality Management in Abu Dhabi Oil Refining Company

This report analyzes the operational issues faced by Abu Dhabi Oil Refining Company and suggests strategies to resolve them. It covers the background of the organization, its issues, and the strategies required to be applied.

Running head: QUALITY MANAGEMENT
Quality Management
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction............................................................................................................................2
2. Background to the organization and its operational issues....................................................2
3. Strategies required to be applied............................................................................................3
4. Conclusion..............................................................................................................................5
References..................................................................................................................................6

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1. Introduction
Abu Dhabi Oil Refining Company is an oil and gas manufacturing organization,
which is located in UAE. The organization has brought about different changes in the
operations to enhance the profitability and marketing perspectives of the business. On the
other hand, the business holds strong bonds with the stakeholders, as it will be helping the
same in maintaining the efficacy of the operations relating to vast value chain. However, in
the recent years the organization has faced issues relating to the diminishing quality of the
product offerings, which has affected the brand name of the same while operating in different
global markets. The purpose of the report is to undertake a detailed analysis of the operations
that are undertaken by the concerned organization and thereby suggest strategies in order to
resolve the issues that are faced by the same.
2. Background to the organization and its operational issues
Abu Dhabi Oil Refining Company is an UAE based organization, which offers
crude oil, natural gas and Petrochemicals as per the demand faced by the same in the
international markets. The organization is counted among seventh-largest reserves of oil in
the world through its holdings of 97.8 billion barrels. The organization stands to be twelfth
largest oil company by production accounting to 3.1 million barrels per day (Rui et al., 2017).
The revenue of the organization is estimated to be US$60 billion as compounded by the end
of the fiscal year 2017. The growth of the organization is specifically depending on the
product diversification strategies that are undertaken by the same. It has helped the
organization in achieving a unique selling proposition while operating in diverse market
structures. The organization played a major role in managing hydrocarbons on behalf of the
government. It has helped in the catalytic development of the nation (adnoc.ae 2018).

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The different issues that are faced by the organization are based on the fluctuations in
the global economies and the complex nature of international and national frameworks.
Different technologies that are implemented by organizations have helped the same in
upholding the efficacy of performance while working in diverse international markets. Yusuf
et al., (2014) stated that the government regulations on the carbon emissions relating to the
ever changing regulatory frameworks, which has restricted the operations of the business. On
the other hand, the excessive competition in the industry has affected the position of the
business while operating in diverse economies.
Abu Dhabi Oil Refining Company faced issues in monitoring over the different
activities that are undertaken by the workforce due to the complex nature of the same. The
complexity of the activities has resulted to different issues in monitoring over the functions
and thereby controlling the same. The complexity of the functions affected the performance
of workers while operating as per the objectives of the business. The diminishing rate of
product price by 50% has affected the operations of the business. The operating costs have
exceeded with the diminishing price of the oil and gas products, which has resulted to loss of
the organization (adnoc.ae 2018). The organization operates in diverse economies prone to
price and resource fluctuations which has affected the smooth functioning of the same. On
the other hand, lack of proper collaboration with different oilfield services has affected the
globalized operations of the same.
3. Strategies required to be applied
Abu Dhabi Oil Refining Company must undertake altered strategies in order to
resolve the issues that are encountered by the business while operating in diverse economies.
The organization might undertake different cost- cutting strategies in order to enhance the
operations and product development stages while operating in economies that experience
fluctuations. The operational costs that are undertaken by the organization is related to the

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cost of raw materials and the labour supplies. Automation of the different processes will be
helping the organization in minimizing the different costs relating to the human workforce.
On the other hand, the optimization of the operations will be facilitating the productivity pof
the same while competing in diverse economies.
Moreover, the concerned organization must undertake suitable performance indicators
and monitoring processes in order to enhance the business functioning as per the needs of the
same. The concerned organization must take steps to develop certain assessment programs in
order to identify the flaws in the complex operational frameworks. On the other hand,
undertaking assessment of different business environments will be helping the management
in facilitating the investment procedure. Rui et al., (2017) stated that collaborations with
diverse foreign organizations help businesses in improving their situation in the global
markets through expansion of the same. As per the case, the concerned organization must
undertaker active collaboration with different oil and gas reserves, which will be helping the
business in facilitating wide expansion and minimize risks of the same. Harhara, Singh and
Hussain (2015) stated that the improvements in the business processes helped organizations
in undertaking the different modifications in the situation of the same in diverse global
economies. The concerned organization might take steps to bring forth changes in the
business processes and the value chain networks. Moreover, the organization must also
undertake steps to build on the communicability of the same while operating in diverse
economies. Rui et al., (2017) stated that enhanced communication of businesses helps the
same in undertaking the smooth operations of businesses. Therefore, the enhanced
communication of businesses helps in upholding the efficacy of the functions as per the
objective of the same.

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4. Conclusion
In conclusion, it can be mentioned that global oil and gas sector is highly dynamic due
to the changing trends of economies, political agenda and fluctuation in demands, thereby, it
is worth stating that no long-term strategy might work effectively. It is also worth mentioning
that increasing pressure which is being leveraged on oil and gas organization as the
consequence of significant asset as well as environmental asset, decreasing the performance,
increasing cost and more frequent drop’s in the pressure. Thus, businesses in the sector must
have to take the actions that are ready and swift in nature. The existing economic climate has
provided the essential focus on operational excellence along with the platform of
technologies in the operation.

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References
Harhara, A. S., Singh, S. K., &Hussain, M. (2015). Correlates of employee turnover
intentions in oil and gas industry in the UAE. International journal of organizational
analysis, 23(3), 493-504.
Rui, Z., Li, C., Peng, F., Ling, K., Chen, G., Zhou, X., & Chang, H. (2017). Development of
Industry performance metrics for offshore oil and gas project. Journal of Natural Gas
Science and Engineering, 39, 44-53.
Adnoc.ae. (2018). ADNOC - Abu Dhabi National Oil Company. Retrieved from
https://www.adnoc.ae/
Yusuf, Y. Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N. M., &Cang, S. (2014).
A relational study of supply chain agility, competitiveness and business performance
in the oil and gas industry. International Journal of Production Economics, 147, 531-
543.